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The contention raised by the United India Insurance Co Ltd, the insurer of the air craft, that it was liable to pay only Rs. 7.5 lakhs, which was the liability limited by the Carriage by Air Act 1972 for death due to air carriage accidents which was subsequently rejected by the Court.
The Court held that since the insurance contract was a special contract between insured and the insurer, its liability would be in addition to the liability of the carrier under the 1972 Act. In this regard, it noticed that Rule 22(1) of the Carriage by Air Rules provided that a carrier by a special contract may agree to a higher limit qua its liability. As per the policy, the insurer had undertaken to indemnify the carrier to the extent of Rs. 50 lakhs per passenger in respect of accident liability.
Further the contention rejected by saying "On this issue, I find no substance in view of the settled law that the collateral benefit received by the members of the family of deceased cannot be set-off". "I hereby direct respondent no.1 (carrier) to pay an amount of ?7.5 lacs as per statutory liability under the Act 1972 and respondent no.2 (insurer) is directed to pay an amount of ? 42.5 lacs with interest @ 6% per annum from the date of filing of petitions to the petitioners in each petition within four weeks from the receipt of this order, failing which the petitioners shall be entitled to interest @ 12 % p.a. on delayed payment.", ordered the Court.
86540
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